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Do you know how much money you are losing due to lost time injuries?
The Cost of a No Lost Time Injury
A no lost time injury is when a worker is injured, receives medical attention, and returns to work on the next scheduled shift. Under WSIB rules the worker is paid for the balance of the shift.
A study done recently for a foundry calculated the total cost of a worker getting a foreign body in his eye was $500. This includes paying the worker for the balance of the shift, and paying a replacement worker; the cost of the time for the supervisor to investigate the incident and a manager to review and follow up on the investigation; and the cost of the time to handle all the paperwork.
The Cost of a Lost Time Injury
According to WSIB, the average direct cost of a lost time injury is over $13,000, and that does not include indirect costs! That means does not include the cost of hiring a replacement worker, or training that worker. It does not include your time cost and the hassle of dealing with WSIB and MOL.
That $13,000 comes right off your bottom line! Do you know how much you have to make in sales to cover $13,000?
- At 10% profit you have to sell $130,000 of product to cover $13,000.
- At 5% profit you have to sell $260,000 of product to cover $13,000.
- At 2.5% profit that would be $520,000.
Yes, that is over half a million dollars in sales!
Compare this to the cost of training your workers to work safely. It is an excellent investment, ask your accountant.
